Netflix Stock

Netflix ROE

The Return on Equity (ROE) of Netflix (NFLX) as of Aug 16, 2026 is 41.26 %. In the previous year, Return on Equity (ROE) was 35.21 % — a change of 17.19% (higher).

ROE

41.26 %

YoY

17.19%

Last updated:

In 2026, Netflix's return on equity (ROE) was 41.26 %, a 17.19% increase from the 35.21 % ROE in the previous year.

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Netflix Stock analysis

What does Netflix do? Netflix Inc. is a US company that was founded in 1997 by Reed Hastings and Marc Randolph. Originally started as an online DVD rental service, the company has since become the world's leading streaming provider for movies and TV shows. Netflix offers a wide range of films and TV shows for streaming over the internet and has expanded its services to over 190 countries. The company has also ventured into original content production and operates its own film studios. In addition to streaming, Netflix offers DVD rentals by mail and sells merchandise related to its shows. The company has over 200 million subscribers worldwide and recorded a revenue of $25 billion in 2020. Netflix continues to invest in its own content and has recently announced its entry into the gaming industry. Netflix is one of the most popular companies on Eulerpool.

ROE Details

Decoding Netflix's Return on Equity (ROE)

Netflix's Return on Equity (ROE) is a fundamental metric evaluating the company's profitability relative to its equity. Calculated by dividing net income by shareholder's equity, ROE illustrates how effectively the company is generating profits from shareholders’ investments. A higher ROE represents enhanced efficiency and profitability.

Year-to-Year Comparison

Analyzing Netflix's ROE on a yearly basis aids in tracking its profitability trends and financial performance. An increasing ROE suggests enhanced profitability and value generation for shareholders, whereas a declining ROE may indicate issues in profit generation or equity management.

Impact on Investments

Netflix's ROE is instrumental for investors assessing the company's profitability, efficiency, and investment attractiveness. A robust ROE indicates the firm’s adeptness at converting equity investments into profits, thereby enhancing its appeal to potential and current investors.

Interpreting ROE Fluctuations

Changes in Netflix’s ROE can emanate from variations in net income, equity capital, or both. These fluctuations are scrutinized to evaluate management’s effectiveness, financial strategies, and the inherent risks and opportunities, aiding investors in making informed decisions.

Frequently Asked Questions about Netflix stock

Return on Equity (ROE) of Netflix is 41.26 % in 2026.

Return on Equity (ROE) of Netflix changed from 35.21 % to 41.26 %, representing a 17.19% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of Return on Equity (ROE) Netflix since 2006 – with annual values, charts, and detailed analysis.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Equity (ROE)'s Netflix with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Equity (ROE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Equity (ROE).

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Profitability — Netflix

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